Wells Fargo Securities Reiterates Outperform Rating on Apple on Solid Pricing Strategy

In a report published Thursday, Wells Fargo Securities analyst Maynard Um reiterated an Outperform rating on

. In the report, Wells Fargo Securities noted, “There have been questions as to whether Apple's pricing strategy was flawed given media reports of 5c unit cuts at suppliers. The premise is that not pricing the 5c at the low end of the portfolio pricing range is the cause of softer end demand evidenced by U.S. retailers discounting 5c pricing and supplier cuts. We think the logic is flawed and examine each issue. While our thesis is predicated on gross margin, we believe there is opportunity for carrier expansion (280 vs. BlackBerry at 650 at its peak).” Apple closed on Wednesday at $501.11.